How An Umbrella Company Works

The umbrella company payroll option is similar both to agency PAYE and permanent employment, with a few key differences. Using an umbrella company is very easy to understand and straightforward to use.

Firstly, what is an umbrella company? An umbrella company is a payroll company that acts as an ’employer’ to temporary workers in order to deduct tax and NI on behalf of the worker. An umbrella company can be used by agency workers, temp workers, contractors and freelancers. Whether you work through a recruitment agency or directly via your end-client, you can benefit from using an umbrella company to process your payroll.

Umbrella Company Payroll - How it Works
  • 1. Contact us

    Call us on 01707 669023  to sign up with Umbrella Company UK, or complete our online registration form. Once this is done we’ll get in touch to complete the sign up process which will only take a few minutes.

  • 2. Agreement

    We will contact your agency to let them know you’ve signed up. Umbrella Company UK will enter into an agreement with your agency to be your umbrella payroll provider, and each party will sign a contract.

  • 3. Welcome email

    Once you’re officially signed up to Umbrella Company UK, you will receive a welcome email from your Account Manager. It will: explain the next steps to onboard you to our service, ensure you are properly set up to get paid and clarify that you understand the payroll process.

  • 4. Complete your timesheets

    When you working for your end-client, you will need to complete timesheets to reflect the hours you have worked. This may be done on a weekly or monthly basis, depending on your payment frequency.

  • 5. Send timesheets to your agency

    Once you have filled out your timesheets, send them to your agency to get signed off with your client. If your agency or end-client has agreed to reimburse any expenses in the course of working, remember to forward these to your agency for approval as well.

  • 6. Email your timesheets to us

    When your timesheets have been sent off, they’ll be forwarded back to you. These will need to be sent to Umbrella Company UK alongside clarification of your rate of pay. If you have any allowable expense claim please include these in the email alongside supporting receipts.

  • 7. We'll invoice your agency

    When you have sent us your signed timesheets, we will invoice your recruitment agency for payment. We will also invoice them for any expenses you are claiming that have been agreed by your agency.

  • 8. Your agency pays us

    Your recruitment agency will arrange payment in-line with the terms and conditions stated in the assignment details. The agency will send funds – your wages for hours worked and reimbursed expenses – direcly to Umbrella Company UK for processing.

  • 9. Tax and deductions

    Umbrella Company UK will process the payment from your recruitment agency, making the relevant deductions according to HMRC legislation – including income tax, National Insurance and Apprenticeship Levy contributions. Contact us for more details on deductions.

  • 10. You get paid

    Your net pay will be paid to your personal account by Umbrella Company UK after the funds are received from your agency and relevant deductions are made. Your payslip will also be available on our secure online portal.

  • 1. Contact us

    Call us on 01707 669023  to sign up with Umbrella Company UK, or complete our online registration form. Once this is done we’ll get in touch to complete the sign up process which will only take a few minutes.

  • 2. Agreement

    We will contact your agency to let them know you’ve signed up. Umbrella Company UK will enter into an agreement with your agency to be your umbrella payroll provider, and each party will sign a contract.

  • 3. Welcome email

    Once you’re officially signed up to Umbrella Company UK, you will receive a welcome email from your Account Manager. It will: explain the next steps to onboard you to our service, ensure you are properly set up to get paid and clarify that you understand the payroll process.

  • 4. Complete your timesheets

    When you working for your end-client, you will need to complete timesheets to reflect the hours you have worked. This may be done on a weekly or monthly basis, depending on your payment frequency.

  • 5. Send timesheets to your agency

    Once you have filled out your timesheets, send them to your agency to get signed off with your client. If your agency or end-client has agreed to reimburse any expenses in the course of working, remember to forward these to your agency for approval as well.

  • 6. Email your timesheets to us

    When your timesheets have been sent off, they’ll be forwarded back to you. These will need to be sent to Umbrella Company UK alongside clarification of your rate of pay. If you have any allowable expense claim please include these in the email alongside supporting receipts.

  • 7. We'll invoice your agency

    When you have sent us your signed timesheets, we will invoice your recruitment agency for payment. We will also invoice them for any expenses you are claiming that have been agreed by your agency.

  • 8. Your agency pays us

    Your recruitment agency will arrange payment in-line with the terms and conditions stated in the assignment details. The agency will send funds – your wages for hours worked and reimbursed expenses – direcly to Umbrella Company UK for processing.

  • 9. Tax and deductions

    Umbrella Company UK will process the payment from your recruitment agency, making the relevant deductions according to HMRC legislation – including income tax, National Insurance and Apprenticeship Levy contributions. Contact us for more details on deductions.

  • 10. You get paid

    Your net pay will be paid to your personal account by Umbrella Company UK after the funds are received from your agency and relevant deductions are made. Your payslip will also be available on our secure online portal.

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